Dec. 14, 2007 - Reverse Mortgage Good Idea?

Are Reverse Mortgages Good?

There has been postcards in mailboxes all over our neighborhood in Summerlin Las Vegas.  It starts our talking about a "NEW" goverment program that protects seniors.  It offers you to respond to the Senior Information Processing Center.  Never once in the add does it mention Reverse Mortgages, but doing a little investigation that is exactly what it was.

Reverse Mortgages can be a good thing.  It can offer a senior money to pay off their exsisting mortgage, repair their home, have more income and have a better lifestyle. Reverse Mortgage's afford you to still be the owner of your home, do not affect social security, there are no tax consquences.

That being said at some point this loan has to be paid back.  As soon as you either pass or sell the house everything comes due.  The debt at the time includes everything that they have sent you, plus interest, plus you original closing costs.  If you have passed your heirs will get what is left over.  If you can no longer live in the house and are going into assisted care what is left over is what will be available to contribute to that care.

Depending on your circumstances a Reverse Mortgage can be a good deal.  Make sure you get all of the facts.  Here is a good webite you can get information.  Also AARP has a lot of information.       

Nov. 15, 2007 - Mortgage help on the way?

Is help really on the way?

I have been saying for months, why do the lenders not go to the borrowers that are in trouble and see if the loans could not be restructured?

I know there are some responsible buyers out there that have just fallen victim to bad loans. Some have hit on hard times such as job loss or injury.

I also know that there are greedy individuals that bought in a hot market, sucked all the the equity out of the houses and then wanted to sell. Oops, now there home is not worth what they owe on it. They can not get the house sold and are looking at foreclosure.

But no matter which kind of borrower they are, I think the lenders need to step up, and work with everyone facing a foreclosure. Otherwise, this could become another Savings and Loan debacle with billions of taxpayers dollars going into a bailout.

It looks like it might be happening according to CNN Money and articles I just read from October 25th and Nov 5th 2007, Countrywide in conjuction with Neighborhood Assistance Corporation of America are going to help people in trouble. They may even help people that are not in trouble.

Not everyone is happy about this but, I for one applaud the efforts of Countrywide and hope that more lenders follow suit.

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